tv Worldwide Exchange CNBC January 15, 2020 5:00am-6:00am EST
it is 5:00 at cnbc global headquarters here is your five at 5:00. a big beautiful monster. president trump says he's set to sign this highly anticipated phase one agreement today. release the bulls. a bold new call this morning from bridgewater that may get gold bugs buying up. how elon musk is inching closer towards locking in on one of the largest bonuses ever
from friends to frenemies, president trump with a bone to pick with tim cook and something that has not been done since 2012. that and more as "worldwide exchange" begins right now ♪ >> good morning. welcome to the show. what you are seeing are live pictures on your screen of our nations capitol where in hours, the u.s. and china will sign that highly anticipated trade deal set around 11:30 a.m. eastern time steven mnuchin spoke to reporters last night weighing in on the news that the u.s. will maintain tariffs on chinese goods until the completion of a phase two u.s. trade agreement
>> if the president gets a phase two quickly, he'll consider releasing tariffs as part of phase two, if not, there won't be any tariff release. there is nothing to do with the election or anything else. no secret agreements >> you'll hear more on sn from steven mnuchin on "squawk box" around 7:45 a.m. at 9:30 a.m. eastern in a first on cnbc, national economic council director larry kudlow will join squawk as well ahead of that large signing ceremony, here is how the markets are shaping up we are talking about modest losses we are right near record highs the s&p 500 just about flat. the nasdaq slightly higher about three or so points to the
upside bond yields are a big focus as well seeing a little bit of movement. 1.788%, 1.562 on the two-year note yield let's go worldwide in the asian trade. we did see a little pull back. mostly red on the screen there nikkei in japan, similar senate losses as well let's spin that around it is about mixed there. the ftse 100 up in the uk. the cac in france slightly did you know and the dax is off about 0.1% as well sticking with the trade theme as the u.s. and china are set to sign that phase one trade deal reportedly close to publishing new rules that would block
powers of foreign-made shipments to china they placed huawei on a trade restricted list. also amazon's feud with fedex appears to be over notifying third party providers that they could use them to ship for the prime program. that comes after a ban on the business and bridgewater says gold could surge to a record high above $2,000 an ounce as central banks embrace higher inflation in an interview, cio said gold prices now trading around 1,533
an ounce should gain >> back to the markets, it is not all about trade. earnings kicking into second gear with block buster numbers jp morgan and citi, gang busters out of the gate. wells fargo faultering a bit today, you've got goldman and bank of america. good morning to you, the big banks, are they important to the market now that we are sitting a stones throw away from record highs? >> they certainly are. the good news is so far so good. wells fargo is kind of an outlier. in terms of what we've seen so far, i would call it a victory i expect some really good
earnings they would like to be one of the highlights it is not likely to be one of the earnings quarter overall the market thinks consensus is down i suspect they'll get a little bit up it will not be a banner quarter on the macroside >> what stood out the most to you about those reports from jp morgan chase and citi group. was it the idea that the bond service was back what does that tell you about later on today? >> you've seen a surge in the trading and investment banking the other part, consumer and loan demand is good to me that
probably means again, you don't have much to worry about here in 2020 because you continue to see the consumer in a pretty good place seeing this other part for example. a great job managing the expense side that shows up in terms of the bottom line earning. >> the past several months in large part of the expectations to the phase one signing today. does that mean the markets need another hurdle to cross when going higher what are we looking at on the
trade front? the markets shutter over the fact that some would remain i think you have to put it in the context that markets have run a long way you've got investor sentiment in a really high level. i think in the short run, we are ripe for disappointment. i think it will be a dip here but today will be interesting in terms of how it plays out. nobody knows the detail. going with what we'll see with the actual document. >> thank you, bill when we come back, the trump administration is looking towards tim cook as the
president calls on apple to quote, think different when it comes to working with law enforcement. plus more on today's trade deal signing. the first interview with the ceo of the national association of manufacturers. a very busy hour still ahead when "worldwide exchange" returnafr iss teth i can. the two words whispered at the start of every race. every new job. and attempt to parallel park. (electrical current buzzing) each new draft of every novel. (typing clicks) the finishing touch on every masterpiece. (newborn cries) it is humanity's official two-word war cry. words that move us all forward. the same two words that capital group believes have the power to improve lives. and that, for over 85 years, have inspired us to help people achieve their financial goals.
a developing story, president trump demanding apple unlike the iphone used in a terror attack in florida rahel solomon with us with the story. >> so president trump lashing out at apple after their refusal to unlock inphones used by criminals. in a tweet saying, we are helping apple all of the time and yet, they refuse to unlock phones used by killers and drug dealers. they will have to step up to the plate and help our great country now. the comments come a day after the u.s. attorney general called on apple and the fbi to unlock two iphones after what was called an act of terrorism
on monday, it did reject barr's accusation that it different provide assistance it said it responded the day after the shooting and apple has turned over many gigs of data including i cloud backups and transactions apple previously said it would have to build a specific tool to access encrypted data after the san bernardino attack in california they would have to build a backdoor to get into encrypted phones, they believe that would exploit privacy issues to bad actors that is the issue. >> the issue here that americans would want to surrender some part of their privacy to counter
law enforcement. i'm not sure the american public falls on this. i'm not in favor of this sling a backdoor means anybody can use it >> that is their point they have a teamworking on cases where there is a subpoena but privacy is important to them >> thank you very much still on deck, one asset class doing something it has not done since 2012 we'll unveil the title of our mystery chart when we return after this that logo should tell you something right there. >> announcer: today's big number, $136.5 billion that's how much money venture capital firms invested in u.s. based companies last year. ilne slightly from 2018 but
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use of the drug. those shares off about 14% in extended trade beyond meat is signing a multi-year deal to lock in supplies of yellow pea protein that's the main ingredient it expands an existing 10-year partnership. those beyond meat numbers have been down 10%. check out bitcoin, off to the best start to the year since around 2012. up around 20%. pointing to growing hopes. this week, the cme pointed to options tied to futures. taking a run today currently 87.19 per token. >> coming up, highlights from the democratic debate. headlines investors need to know wodwe chgecos " me right back ♪
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so we can cover child care for all of our children. >> i don't want costs ever to be a barrier for someone seeking to attend college under my plan, it won't be >> we need to make it easier for people to get long term care since and pay premiums >> i am able to work with republicans, i am able to bring people together. >> it isn't so much about experience, it is about judgement. >> i can't hold a kruj i have to not only be able to fight but to heel and as president of the united states, that's what i'll attempt to do >> after weeks of delay, the impeach trial of president trump is likely days away. speaker pelosi is expected to send the two articles of impeach today, if the house approves if all goes according to plan, senator leader mitch mcconnell says they will continue on
tuesday. >> more from the mlb signing scandal. after an explosive investigation after the astros labeled him a ring leader in the scheme. he was the bench coach in the 2017 world series run and he was mentioned 11 times in the report revealing house houston used a camera to capture signals and relay that to batters. the astros parted ways with their manager and gm >> how big of a deal is this the whole idea that baseball could be rupted by a cheating stand al like this and the punishments being handed down? >> i am a huge astros fan. it is unprecedented. they should get rid of any stealing sign stealing has been accepted in baseball. it is okay to do it as long as
you don't use electronics to do it that is where they are stepped over the line. now they are out two of the last world series winning managers are out of a job. this is something the commissioner wanted to send a very strong message that this will not be tolerated in the sport. >> tech under fire once again in sports phillip mena, thank you for that update >> still ahead, fired up over wall street's recent weakness and what he's telling investors to do now. and how elon musk is moving closer to that massive multimillion pay package and jay timmons, president of the national association of manufacturers. his take on the massive phase one trade deal and what he hopes for in phase two when "worldwide exchange" returns after this
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social media that story in the second half of "worldwide exchange" starts right now. >> welcome back. here is how stock futures are looking. after wall street gave up gains yesterday. the dow jones would open about flat same thing with the s&p 500 and with the nasdaq as well. or our own jim cramer talks about that pull back >> you need to remember that a sell off would be a terrible thing to waste so many companies doing so well. i'd love to buy them but at this point, only on weakness. we still have a ways to go before a pull back really takes
hold the major average on 1% of the year the s&p has already seen six new interaday highs this year. let's get a look at some of the other top stories we are following. elon musk following the first part of the incentive package. the company stock is down in the pre-market trade so far. after rising to $538 yesterday pushing the equity value to around $97 billion if it does reach $554.80 and holds that level for six months, it would unlock the first ever several potential share based payments to musk worth just under $350 million so a very large part of a bonus there perhaps in play with tesla
on the rise. the move after boeing reported the worst annual reporting figures in decades we are learning new details about a meeting between ncaa executives and justice department's antitrust chief over the battle to let college athletes make money. sources tell us the two sides came together in november for the sit down that meeting came shortly after they announced the april deadline for unveiling the next steps in the plan to change rules for letting student athletes from profiting from their names. that is a big deal for fans and proponents of student athletes getting paid this is a live shot of our u.s. capitol where later this morning, the u.s. and china will
sign that phase one agreement. there are questions on keeping goods in place until a phase two agreement is actually reached. we have global team coverage, eunice yoon is live in beijing and kayla is in washington, d.c. kayla, let's start with you, please, what is the white house saying ahead of this phase one signing? >> last night, the president said exports will soar negotiations already celebrating. after a two-year period with more than a dozen in-person talks, new tariffs added on hundreds of billions of goods. even when the text is released later, there is still questions about when those will be removed. in a statement saying there are no other or al or written agreements between the united
states and china on these matters. there is no agreement for future reduction of tariffs any rumors are categorically false. going forward, the u.s. will conduct a track of talks to ensure china implements this phase one deal and holding the position the white house's position has always been that the tariffs are on until and they come to a phase two. >> if he gets a phase two quickly, there will be tariff relief if not, there won't be nothing to do with the election or anything else no secret agreements >> mr. trump said he will go to beijing to start talks on phase two. suggesting that trip will likely to happen closer to the fall to generate positive preelection economic momentum.
today, being billed as a capstone event the largest since the justice brett kavanaugh in the same setting. >> take us through some of the play by play we can expect today. what are the key points that are not yet clear but will be made clear today. >> there will be a lot made clear in the text later today. we expect that to happen we've gotten the broad strokes to this in briefings in fact sheets released last month. there are still key questions about what this looks like when translated the key portion to the president, which is how much china will be purchasing of u.s. goods is going to remain confidential >> all over this, thank you for that update. let's go to beijing with eunice
yoon is live talking about the trade reaction from the chinese side. is this a breakthrough >> i've been speaking to people in and out of the government from the chinese side, the focus is on those purchase targets mainly because people are worried that they'll be unattainable there are concerns that china when it comes to manufacturing, won't have the need to buy so much from the united states. then the other big concern when it comes to the purchases is that they are worried that this could sow seeds of conflict. finally one other major concern that many chinese have about this is that just as many people
in the united states believe they haven't made good on some concerns in the past believing president trump might not make good on this. there appears to be some questions about the strength of the u.s. economy from that reason, the main take away here is that the truce might be quite fragile >> eunice, while we have you around amid all of these trade talks, the trump administration is weighing now new restrictions on huawei. take us through some of those details and the broader implications for the broader relationship >> currently, the u.s. is able to issue a license or block the
sale of certain products to companies such as huawei if the makeup of that good is 25% american it looks as though the commerce department is drafting regulation to lower that to 10% that would be seen as a slap in the face for huawei and another way the u.s. government could pressure huawei and other governments from working with the chinese telecom giant. huawei hasn't said anything. they said they are not going to be speaking about it until something firm comes up. but the chatter from sources here says this goes to show how the phase one trade deal hasn't addressed some of the fundamental issues between the u.s. and china and the priority
such as tech >> thank you as we look ahead to the 11:30 a.m. signing, one person on site at the event is the national association of manufacturing ceo jay timmons. he joins us. good morning to you. the last time we spoke, you were optimistic a phase one deal or some kind of framework would get done do you feel that optimism is justified knowing what you know about this today >> good morning. yes, i am very optimistic. i think manufacturers are extraordinarily pleased. the good news for manufacturers is a key priority addressed in
this that is enforceable rules reporting intellectual property theft. there are a lot of issues that are left to be dealt with. this president has accomplished something no other president in the last 30 years has been able to do. >> you are happy because of the measure blt and enforceability of these agreements. what exactly then needs to be done in a more substantive trade deal >> i'll say even two years ago two years ago, the national association of manufacturers asked the president administration bob lighthizer to get china to come to the table and get an enforceable trade agreement done and completed
we have two very different economies. we have a market based economy, a expanding control economy in china. those two systems were not compatible as china was dominating the world, we knew if we didn't get those rules of the road established, they would be left in the dust so to speak we wertd transfer of technology any of the nondistorting prak 'tises. we want to see all of those addressed. over time, we understand it can't be done today this is a great first step and shouldn't be anything astounding in the magnitude. >> not all of your constituents are benefitting that much.
we know there are some head winds to battle through. how do you say those in the steel industry versus aero and defense, how do they say this is a better deal for everybody involved >> the bottom line is that china is at the table. they haven't been at the table until now. with steel and other commodities where they oversupply and dump their products into the market and they drive prices down that hurts american workers understanding that these practices are not just bad for the united states but for the entire world that doesn't help china as they have emerged as one of the most propertiable and successful economies in the world. they are starting to see that their practices are harmful to
the rest of the world. we need to keep making that point and pressing it. >> what we are showing viewers right now. we are using it as and indicator. this is a company that lost over three quarters of its value over a time a this steel should be trying to find some bottom here. this is a hope where you could have a renaissance in the united states with phase one coming up and what we can get with china in a phase two and beyond. i think you are seeing that. if you take a look at the survey we reduce. manufacturing confidence has been at record highs that number actually slipped in the second and third quarter of last year based on two factors the number has been finding a
skilled work force we have 500,000 open jobs in manufacturing. and why they are launching our creators wanted campaign which will be taken across the entire country this year. the second big issue was trade uncertainty. think in terms of the trade agreement and china deal, we've got both of those issues resolved usmca will past the senate we hope in the next few weeks, the u.s./china deal being signed today. i think you'll see an uptick in the first quarter. that is good news. increased investment an job creation we feel good that this is going to lead to some strong confidence measures. >> you've got a big day ahead of you. the ceo of the national association of manufacturers, thank you for your thoughts this morning. >> thank you >> please join us again. for more on that phase one trade
deal, i'm joined by jeff mills, the chief investment officer and newly minted cnbc contributor as well you heard the comments from the national association of manufacturers, how big of a deal is it that this phase one trade deal will get inked today? >> thank you for having me on bright and early today this is what markets were expecting i don't think it will move markets dramatically in one direction or another as has been well documented, i think the markets were primed for a little bit of pull back. stocks are trading above the trading average. whether it is a trade headline or something else, the market may wobble as long as we have this
deescalation of tariffs, which we do have as we work towards phase two, it becomes evident they'll be able to achieve, we'll have some volatility for now, it is a positive. >> you've been part of the fast money team in the afternoons here we often times talk about statistic al probabilities they are far away from averages to the upside does that mean the pull back should happen and should you buy it. >> a pull back is always possible yes, i think the market is a little overbought. we've gone 66 trading days without a pull back i think
people are starting to make the analogy between this year and 2018 you had 60% of the stock two standard deviations above the average. there are no cracks in credit right now. usually, you start to see the credit wobble a pull back is possible it always is that is not good news. i don't think we should make the analogy today between 2018 for something that is severe >> don't go anywhere we'll stick around with you. coming up, treasury secretary mnuchin will have more on that trade deal on "squawk box. that interyview a must watch at 7:45 a.m. today. and at 9:30 a.m., national
economic council director larry kudlow two very big interviews. coming up, bank earnings are in focus again with results from bank of america and goldman sach on deck. will ford frost is here with more coming up after this break. ♪ when you look at the world, what do you see? ♪ where others see chaos, we see patterns. ♪ connections. relationships. ♪ when you use location technology, you can see where things happen,
before they happen. ♪ with esri location technology, you can see what others can't. ♪ i can. the two words whispered at the start of every race. every new job. and attempt to parallel park. (electrical current buzzing) each new draft of every novel. (typing clicks) the finishing touch on every masterpiece. (newborn cries) it is humanity's official two-word war cry. words that move us all forward. the same two words that capital group believes have the power to improve lives. and that, for over 85 years, have inspired us to help people achieve their financial goals.
talk to your advisor or consultant for investment risks and information. high protein. low sugar. tastes great! high protein. low sugar. so good! high protein. low sugar. mmmm, birthday cake! pure protein. the best combination for every fitness routine. tgs earnings central earnings season rolls on with banks in focus out with results before today's opening bell yesterday, you had yp morgan chase and citigroup topping expectations wells fargo missed the mark i was with you when you were breaking down all of these big numbers.
>> so three big take aways so fic trading was better than expected especially for jp morgan for today, that means more for goldman sach the second big take away, net interest margins that rely relates to the rates is less bad than feared. it was expected to decline loan growth as well continues to help that part of the business but only 2 or 3% now
the final take a away is wells fargo. the big question is how much is that the new ceo lowering the bar for himself compared to a fresh set of eyes. most of the misses on the expense side is better than a massive revenue miss that said, there was some miss. the question is how much long term market share losses are there versus short term fixes. >> three companies you can consider bellweathers in the industry for more on the story, we are join the again by jeff mills, chief investment officer you heard the breakdown of day one of earnings season and big bank earnings.
we talk about the idea that they did have a stellar 2019. what are you expecting this time around >> they did have a good run up you have to think they moved a little ahead of earnings it is important to realize, look, we are not coming in with the earnings at all-time highs we are still about 8% below the highs made in 2018 some of those positives pointed out whether loan growth, low credit loss provisions that is about flat year over year the net interest margin has been the biggest head wind. that is looking to stabilize a little bit improving to 2021 we are at about 25 basis points. that is biased to steepen a
little bit more. >> b of a and goldman sach, which story is going to be more key? >> i'm going to say both bank of america is more of the bellweather. by goldman sach is unique because of a new reporting structure and they've run up 9% in the last month. that is very low it has rallied it is a tough set up a lot of quirks and fixed income should bode well it is a tough set up all of the ingredients are set up for the recent high >> we'll watch you through the course of the day. still on deck, president trump is preparing to celebrate the signing of the phase one trade agreement.
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how important is this factoring the phase one trade deal >> what they are concerned about and you are seeing is that you are looking at the options market is the continue uous volatility you are really seeing the impact of it. >> it is linked to the u.s. dollar what are you seeing with regards to the phase one agreement that makes this deal something that can be generally enforced over the next several quarters or years. the issue there is interesting because the stronger dollar is not good what happens is that they want a
stro strong yuan. some are doing it well and some are not. they are saying i'm not in the business of speculating but in the business of having predictable earnings a strong yuan is good for the strength of the u.s. they are saying, listen, we are getting more trades. that remains confusing and keeps the volatility up. >> outside of that u.s. currency dynamic, the trade agreement or battle is rolled into other parts as well. dollar/yen what does the currency dynamic right now tell you about the future of the global economy >> it tells me, unfortunately we'll see a year of volatility the united states is hoping for
some countries that will have a strong dollar and weaker dollar that will not impact the corporate world as you would expect we've seen that a lot between the dollar euro and the yen. it is kind of mixing it a little more than just a triangle. >> what are the types of companies you are looking at that could be hot spots or lightening rods. >> different types it is not industry specific. it is more specific about who is good and who is not. if you have the lights of colgate, they have significant loss they continue to show there is no price ee las tisity in the market if you can take the tooth paste price and adjust it accordingly. man power, over $100 million
lost how many jobs is that? think about that you have companies like this who do it really well. >> names to think about there. thank you. that does it for "worldwide exchange" this morning big phase one trade deal later on today "squawk box" begins right now. the count down is on president trump will sign the phase one trade agreement today. treasury commissioner will join us live this morning >> and bank of america and goldman sach numbers today and president trump rips apple over refusing to unlock phones it is wednesday, january 15, 2020 "squawk box" begins right now.
>> good morning. welcome to "squawk box" here we are live from the mart in times square let's take a look at u.s. equity futures. yesterday, the dow pushed higher about 32 points. s&p and nasdaq pulled back slightly you actually saw the big six averages hit regard highs. the nasdaq and dow utilities and 52-week high for the russell 2000 and dow transports. today, we are indicate slightly higher as we await more earnings reports before the opening bell. right now, the dow indicated up about by 14 points if you look at what's been happening in the treasury market, we watch the